Automobile finance company AmeriCredit Corp. (ACF), Wednesday reported a profit for the fourth quarter, due to the absence of an impairment charge recorded last year, and lower expenses. Looking ahead, the company expects to see continued pressure on consumer credit from high unemployment levels and weak economic conditions.
Net income for the fourth quarter was $31 million or $0.23 per share, compared to a net loss of $150 million or $1.30 per share in the prior year quarter. On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the fourth quarter. Analysts' estimates typically exclude one-time items.
The net loss for the year-ago quarter included a $135 million or $1.17 per share after-tax impairment charge, related to the write-off of goodwill recorded in connection with the acquisitions of Long Beach Acceptance Corp. and Bay View Acceptance Corp.
Fourth quarter revenue decreased to $454.45 million from $598.41 million in the same quarter last year. Five analysts had a consensus revenue estimate of $412.59 million for the fourth quarter.
Originations were $175 million for the second quarter, down from $780 million in the previous year quarter.
Total costs and expenses for the quarter eased to $398.5 million from $809.0 million in the prior year quarter.
For fiscal year 2009, AmeriCredit reported net income of $14 million or $0.11 per share, compared to a net loss of $69 million or $0.60 per share in the year-ago. Annual revenue dropped to $2.08 billion from $2.54 billion in the previous year.
The Street expected AmeriCredit to report a loss of $0.15 per share on revenue of $2.06 billion for the year.
Looking ahead, Dan Berce, president and CEO of AmeriCredit, said, "We fully expect to see continued pressure on consumer credit from high unemployment levels and weak economic conditions, especially as we head into our seasonally weak second half of the calendar year."
ACF closed Wednesday's regular trading session at $16.66, up 42 cents or 2.59%. In the after-hours, the shares further gained 34 cents or 2.04%.
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